Charter of the Vietnam Stock Exchange according to the Law on Securities 2019

Charter of the Vietnam Stock Exchange according to the Law on Securities 2019 (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Charter of the Vietnam Stock Exchange according to the Law on Securities 2019

The Charter of the Vietnam Stock Exchange (VSE) according to Article 45 of the Law on Securities 2019 is as follows:

- The charter of VSE shall be approved, issued, amended by the Minister of Finance at the request of the Board of members or Board of Directors of VSE and according to comments of the President of SSC.

- The Charter of VSE shall have the following contents:

+ Names and addresses of the headquarters, subsidiaries and branches;

+ Objectives, operating scope and available services;

+ Charter capital; method for increasing, decreasing of charter capital and stake transfer;

+ Names, addresses and basic information of the founding shareholders, capital contributors or owners;

+ Stakes or shares and capital contributed by the founding shareholders, capital contributors or owners;

+ The legal representative;

+ The organizational structure;

+ Rights and obligations of VSE;

+ Rights and obligations the shareholders, capital contributors or owners;

+ Rights and obligations of the Board of members, Board of Directors, General Director (Director), the Board of Controllers (Controllers);

+ Formalities for approving decisions of VSE;

+ Formalities for amending the charter;

+ Applied accounting and audit regulations;

+ Establishment and use of funds; rules for use of profits, settlement of losses and other financial regulations;

+ Rules for internal dispute settlement.

2. Rights and obligations of the Vietnam Stock Exchange

The rights and obligations of the Vietnam Stock Exchange according to Article 46 of the Law on Securities 2019 are as follows:

- VSE has the rights to:

+ Issue its regulations on listing and trading securities, disclosing information, regulations on its members and other regulations on organization and operation of the securities market after they are approved by SSC;

+ Organize and operate the securities market;

+ Putting securities under alert, control and restriction in accordance with law and its SSC;

+ Suspend or terminate trading of certain securities in case of abnormal fluctuation in their prices or trading quantity without rectification by their issuers, which result in the securities being put under alert, control or restriction, or in case the suspension or termination is necessary to protect the investors’ the lawful rights and interests and ensure the stability and safety of the securities market;

+ Approve, change, cancel listing or registration of securities; supervise the fulfillment of conditions for listing of securities of listed organizations;

+ Grant and cancel membership of members of VSE;

+ Provide bidding services; services involving market information and information about listed or registered securities; technological infrastructure development services for the securities market, and other relevant services specified in its Charter;

+ Act as a mediator to settle securities-related disputes at the request of its members;

+ Carry out inspections and take actions against violations committed by its members, listed organizations and registered organizations in accordance with its regulations;

+ Request regulatory authorities to provide information about its members, listed organizations and registered organizations for information disclosure purposes as prescribed by law;

+ Other rights prescribed by law and its charter.

- VSE has the obligations to:

+ Ensure the transparency, fairness, order, safety and efficiency of securities trading on the securities market;

+ Comply with regulations of law on accounting, audit, statistics, financial obligations, reporting, information disclosure;

+ Supervise the trading of securities and fulfillment of obligations of its members, information disclosure by listed organizations, registered organizations and the investors that have to disclose information as prescribed in Article 118 of this Law.

+ Issue criteria for supervision of transactions and trading indicators applied to its members after they are approved by SSC;

+ Propose to SSC measures for responding to events that affect the safety, stability or integrity of the securities market; violations committed by investors, its members, listed organization or registered organizations;

+ Cooperate in dissemination of knowledge about securities and the securities market among investors;

+ Provide information for and cooperate with VSDCC in securities activities; cooperate with other authorities in investigations and taking of actions against violations against regulations of law on securities and the securities market;

+ Fulfill other obligations prescribed by law and its charter.

- Executives and employees of VSE, in performance of their duties, shall comply with regulations of law on securities and the securities market, code of professional ethics, information confidentiality regulations and relevant laws.

- The Prime Minister shall decide the entities responsible for the fulfillment of rights and obligations of VSE and its subsidiaries as prescribed by this Law and proposed by the Minister of Finance.

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